Review Quiz
- 1. Company XYZ has been de-listed from the Nasdaq and does not qualify for a nationally listed exchange. Which of the following is required in order for a member to be permitted to quote XYZ on the OTCBB?
- A. The company must undergo an “examination period” by the OTCBB with a minimum 90-day waiting period
- B. The company must file current financial statements with the SEC
- C. The company must have a minimum trading volume as set by the OTCBB
- D. There are no eligibility requirements to be listed on the OTCBB
- 2. Which of the following statements is not true of the Pink Sheets?
- A. Pink Sheet companies are not required to meet financial listing requirements
- B. Pink Sheet companies tend to be small and thinly traded
- C. Pink Sheet companies must register with FINRA to be listed
- D. Pink Sheet companies do not file periodic reports with the SEC
- 3. Before a broker-dealer can sell a penny stock, SEC rules require the firm to:
- A. provide the customer with the penny stock company’s last financial statement
- B. furnish the customer a document describing the risks of investing in penny stocks
- C. receive approval from FINRA for the sale
- D. mark the buy order with the notation “p